Power Distance Israel scores very low (13) compared to China, Power distance means that the power is not distributed evenly. In the society individuals are not equal. This leads to an unbalanced country (Hofstede, sd). Individualism With a score of 54 point, is it clear that Israel has a mixture of collectivistic and individualist.
Families often have many children, and have good bands with other family members. The communication towards people is meaningful, a very strict to the point (Hofstede, sd). Those aspects have much potentials, Netflix has a standard option which have multiple user accounts so it can easily shared between family members. (Hofstede, 2014) Masculinity Israel scores also high on masculinity, with a score of 47 points. This means Israel is neither a Feminine nor Masculine society. Masculinity within Israel is shown by success and achievement. And a Feminine society is often shown by the quality of life (Hofstede, sd).
The potential regarding achievement in life and the quality of life, is something that is shown in different ways. Netflix can make the quality of life much better, watch your favorite movie or show anywhere and everywhere. Uncertainty avoidance Israel is a strong uncertainty avoidant country (81). Rules are very important, rules like time is money, precision is the norm and also have the inner urge to work hard (Hofstede, sd). Netflix cares about customer satisfactions, because Israeli people have other interest regarding what they like to see on Netflix. Netflix can adjust their content library, to match the interest of the Israeli people. Long term orientation This dimension describes how the country is dealing with their past and how they handle in the future.
For this Israeli scores 38 points, this is very low. In Israeli society people have a normative thought (Hofstede, sd). Indulgence Israel is a very restraint country, and sticked to their laws. Within indulgence restraint means the way people control their desires based on their education. This can also tell whether people would have interests to watch movies in their spare time. (Hofstede, sd). Administrative Distance The State of Israel is divided into six main administrative districts, known as Mehozot singular: Center, Haifa, Jerusalem, North, South, and Tel Aviv districts, as well as the Judea and Samaria Area in the West Bank.
All of the Judea and Samaria Area and parts of the Jerusalem and Northern districts are not recognized internationally as part of Israel. Israel maintains diplomatic relations with 158 countries and has 107 diplomatic missions around the world countries with whom they have no diplomatic relations include most Muslim countries. Only three members of the Arab League have normalized relations with Israel: Egypt and Jordan signed peace treaties in 1979 and 1994, respectively, and Mauritania opted for full diplomatic relations with Israel in 1999. Geographic Israel is situated in the Middle East with a 273-km coastline bordering the Levantine Sea.
The country has a total area of 20,700 square kilometers that makes it slightly larger than the American state of New Jersey (Central Intelligence Agency, 2018). The capital of Israel is Jerusalem. Despite that, there are some uncertainties about that and was recently in the news again. Palestine also claims that this city belongs to their state (United Nations, 2017; Central Intelligence Agency, 2018). Most of the Israeli citizens lives in and around Tel Aviv.
This major city is located at the coastline of the country which can be easy accessed by sea and by air. This is the city where the country welcomes the most international flights using the Ben Gurion International Airport. In contrast is Jerusalem located more in the midlands near de Palestinian border (Central Intelligence Agency, 2018). Because most of the citizens lives in the urban areas, there are more chance for Netflix to gain customers.
According to Central Intelligence Agency (2018) 92.3% of the Israeli citizens lives in an urban area. The cities Tel Aviv, Haifa and Jerusalem are the major urban areas. The urban areas are more likely to have a better internet connection than in the midlands. Netflix could take advantage of it by focusing on these three cities. Economic (According to Doing Business (sd), Israel is categorized as a high-income country. This Mediterranean country has a GDP per capita of $35,200 and an unemployment rate of 4.8% (Doing Business, sd).
Besides that, there are no more than 22% of the populations that are below the poverty line ($7.30 per person per day). So, most of the Israeli citizens has a decent income that can afford a Netflix subscription. Israel has their own currency they liked to call the Israeli new shekel. One ILS is equal to $0.294412 (XE, 2018).
Netflix should consider this exchange rates, because the New Shekel is getting since last year more value. This can be a disadvantage for setting up subscriptions prices for the country. As of January 2016, all business in the country are paying a corporate tax rate of 25%.
When doing business in Israel, Netflix must present their profit 33 times a year to pay the Israeli taxes. The Value-added tax (VAT) is 17%, which means that Netflix must include this 17% of tax in her pricing (Doing Business, sd). The country has according to CIA (2018) an 83.55 billion-dollars revenue which 90.53 billion will be spend.
These facts make Israel with more than 124 billion dollars, the 20th country in the world with the most current account balance. So, overall, Israel is a country with citizens who can afford Netflix subscriptions.